Melbourne’s billionaire Besen family is set to exercise an option to sell part of its stake in the $1.2 billion Highpoint shopping centre back to troubled property group GPT.
The Besen family owns 50% of Highpoint and an adjacent homemaker centre, while GPT purchased the other half in 2006 for around $620 million.
Under the terms of that deal, the Besen family has an option to sell its stake in Highpoint this year to the GPT Wholesale Shopping Centre Fund. That’s not exactly welcome news for GPT, which like most property companies is struggling under a mountain of debt.
“Should the fund choose not to acquire the interest, GPT stands behind the fund and has the ability to either acquire or sell the interest,” GPT said in a statement yesterday.
If the option is exercised, the sale price will be determined by an independent market valuation process.
GPT’s 50% stake in Highpoint was valued a $651 million December 2007, while its stake in the homemaker centre was valued a $30.25 million. However, shopping centre valuations have tumbled since then due to the struggling economy.
A spokesman for the Besen family said yesterday it is keen to remain involved in Highpoint.
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